"Since Steward's inception in 2011, they have achieved outstanding results and now rank as the second largest hospital operator in New England, with the largest community-based network of physicians. Dr. Ralph de la Torre, Steward's Chairman and CEO, is recognized for his thought leadership in the healthcare industry, demonstrated by Steward's innovative model in delivering healthcare to over 150 communities across Eastern Massachusetts, Rhode Island and Southern New Hampshire. We are very excited about the opportunities this relationship creates for both of us."Benefits of the Transaction
- Achieves Immediate Accretion.
- Expands Acquisition Pipeline. The transaction aligns MPT with an industry-leading acute care provider and provides the Company with right of first refusal to purchase real estate resulting from Steward's future growth.
- Reduces Tenant Concentration. Subsequent to the Steward and MEDIAN transactions, MPT's exposure to its largest tenant improves to 17.8% from 20.8% and its two largest tenants combined improve to 33.9% from 40.2%.
- Improves Diversification. The transaction improves geographical diversification with MPT now being represented in 30 states at the close of the transaction. Acute care facilities as a percentage of MPT's U.S. portfolio increases to 80%, up from 75% as of June 30, 2016.
- Increases Critical Mass. The transaction, combined with MEDIAN transactions, increases MPT's total gross assets 29% to approximately $7 billion on a pro forma basis. Further, it adds nine hospital properties and approximately 1,800 beds to MPT's portfolio increasing the total number to 248 and approximately 27,000, respectively.
- Establishes New Operator Relationship. The transaction adds Steward to MPT's industry-leading group of 30 hospital operators. Steward provides the largest fully integrated community-based healthcare delivery system in New England.